Top 5 Largest Cities in the World by Population
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Top 5 Largest Cities in the World by Population

How a small fishing village became Africa's largest city and economic hub

Global Insights Team
4 min read
March 1, 2025
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Lagos, Nigeria's former capital and current commercial hub, stands as a testament to the transformative power of urbanization in Africa. With a metropolitan population exceeding 15 million people, Lagos has evolved from a modest Yoruba fishing settlement into one of the world's fastest-growing megacities.

Historical Foundation

The history of Lagos dates back to the 15th century when it was known as "Eko" by the indigenous Yoruba people. The name "Lagos" was given by Portuguese explorers, meaning "lakes" in Portuguese, referring to the lagoons that characterize the area's geography.

The strategic location of Lagos on the Atlantic coast made it a crucial point for trade, initially in palm oil and later, unfortunately, in the transatlantic slave trade. This dark chapter in history paradoxically contributed to the city's early international connections and economic significance.

Colonial Era and Development

British colonial rule, beginning formally in 1861, brought significant infrastructure development to Lagos. The construction of railways, ports, and administrative buildings laid the foundation for the modern city. The colonial government recognized Lagos's strategic importance, making it the capital of the Southern Nigeria Protectorate and later the entire Nigerian colony.

Post-Independence Growth

Following Nigeria's independence in 1960, Lagos served as the national capital until 1991, when the seat of government was moved to Abuja. However, this transition did not diminish Lagos's economic importance. Instead, it allowed the city to focus entirely on commercial and industrial development.

Economic Significance

Today, Lagos contributes approximately 30% of Nigeria's GDP, making it the economic nerve center of not just Nigeria but West Africa as a whole. The city hosts the headquarters of major banks, multinational corporations, and serves as the gateway for international trade in the region.

Key economic sectors include:

  • Financial Services: Home to the Nigerian Stock Exchange and major banks
  • Manufacturing: Industrial estates producing goods for domestic and export markets
  • Entertainment: The heart of Nollywood, Africa's largest film industry
  • Technology: Emerging as a major tech hub with numerous startups and innovation centers
  • Port Operations: Apapa and Tin Can Island ports handle the majority of Nigeria's imports

Infrastructure and Urban Development

Lagos has undergone massive infrastructure development in recent decades. Projects like the Eko Atlantic City, a planned city built on reclaimed land, represent the ambitious vision for Lagos's future. The Lagos State government has invested heavily in transportation infrastructure, including the Bus Rapid Transit (BRT) system and plans for rail networks.

Challenges and Opportunities

Despite its economic success, Lagos faces significant urban challenges. Traffic congestion, inadequate housing, and infrastructure strain are ongoing issues. However, these challenges also present opportunities for innovation and investment in urban solutions.

The city's young, dynamic population and entrepreneurial spirit continue to drive innovation across various sectors. From fintech startups to creative industries, Lagos remains at the forefront of Africa's economic transformation.

Cultural Impact

Beyond economics, Lagos serves as a cultural melting pot where traditional Yoruba culture meets global influences. The city's music scene, fashion industry, and culinary landscape reflect this unique blend, making Lagos a trendsetter for the entire continent.

Future Prospects

As Lagos continues to grow, urban planners and policymakers face the challenge of sustainable development. The Lagos State Development Plan 2052 outlines ambitious goals for transforming Lagos into a 21st-century economy that is globally competitive and livable for all residents.

With ongoing investments in infrastructure, technology, and human capital development, Lagos is positioned to maintain its status as West Africa's economic powerhouse while addressing the challenges of rapid urbanization.

Last updated: March 1, 2025